IHT treatment of specialty debts
The government has back-pedalled on a controversial decision on inheritance tax after widespread criticism. HMRC came under fire when it decided that a type of debt which had historically been exempt from inheritance tax would now be subject to it – going against centuries of legal precedent.
After discussions with professional bodies, it has now changed its position again – though things still aren’t back to how they were before. Let’s take a look at what’s going on.
What’s the history?
The controversy relates to a type of debt called a ‘specialty debt’, which is one owed to someone who is not domiciled in the UK. It’s a kind of debt created by a deed or a seal, not just a normal contract.
Historically, such debts, when owed to a non-dom, have been exempt from UK inheritance tax if the document recording the debt is held outside the UK. In 2013, however, HMRC decided that specialty debts should usually fall under the country where the debtor lived instead – so if the debtor lived in the UK, the debt would now fall under UK tax law.
Yeah, so what?
Under the Inheritance Tax Act, property outside the UK is not subject to inheritance tax if the person inheriting it is not domiciled in the UK. And although ordinary debts come under the country where the debtor lives for tax purposes, specialty debts are considered to be a special kind of debt, and it is a long-established UK legal principle that their legal location is that of the document recording the debt.
The principle goes back to the Elizabethan ecclesiastical courts, which held that “the debt is where the bond is, being upon a speciality; but debt upon a contract follows the person of the debtor”.… Read more
The job market is suffering from candidate skills shortage. People seeking employment should use a recruitment agency specializing in their sector. Working with a recruitment firm takes pressure off the seekers and make the search more fruitful. Recruiters also offer a job seeker the opportunity to work for noble employers. How do you make sure that you’ve selected the right agency?
Assess Your Needs
Before contacting an agency, you should be familiar with your needs. What are you looking for in the job industry? What’s preventing you from achieving your dreams? To identify the support you need from a headhunter, it’s vital to assess your portfolio as well as career prospects.
Do Your Homework
To choose the right recruitment agency, do your homework. Look at the firm’s LinkedIn profile for the experience. Is there a sign of experience in your area of specialization? Do they demonstrate the claimed experience in your conversation? Look for a recruitment agency that’s willing to cater to your needs.
Do You Need a Specialist or Generalist?
Are you designated in a particular sector or exploring your options? Perhaps you’re open to a variety including a career change. A generalist would be your first option. If you’re a trained specialist, such as an engineer, you should find a recruitment firm that connects you to your niche. The firm should understand the trends as well as quirks of the sector. If you’re a salesperson, get professional IT sales recruiters to assist you.
Inquire from Your Peers
Searching for a recruitment agency can be as simple as inquiring around. There’s a possibility that your peers know about the firm’s reputation through their network. They have possibly been in touch with the company. Since recruiters are social, you might find invaluable information online. Ask your peers to recommend … Read more
We’ve all experienced a time when we’re trying to enter or exit a place, and someone is either trying to get out or in. You find yourself looking up at the sign to make sure you’re in the right spot. Not everyone reads these safety signs. That’s why it’s important to read on your own instead of following a crowd. Some people engage in unsafe or hazardous activities, knowingly and unknowingly. Following these select few can lead you and themselves right to harm. Safety signs you may really want to pay attention to are exit signs, entrance signs and do not enter signs.
Being observant of your surroundings not only means acknowledging who or what is in your environment. These days you also need an escape plan. Exit signs are a breath of fresh air when you need to get out of somewhere quickly. Take note of where they are. Even if you don’t feel like you’ll remember, this information may come back to you in a time of need. Another thing to note is exits are not made to be blocked. If you’re one of the shoppers that tend to stand outside of the store checking items or receipts, please be courteous and stand off to the side. Do not block the exit. That can be a safety hazard.
If you’ve ever gone to the store and had someone walking out of the clearly defined entrance and you’re walking in, then you know how important it is to read this sign. Entrance signs help the flow of traffic. Generally, all the people that follow the entrance sign are headed in the same direction. You don’t want to find yourself standing outside of a door that doesn’t open. Usually locked or blocked doors will have an … Read more
At some point, somewhere, in someplace, someone you know is thinking about or actually starting a viable business of some kind. Whether they succeed or fail in this endeavor will depend in part on how well they manage the books. The activity of recording business transactions or bookkeeping helps businesses account for what you’re doing now and hope to do in the near the future.
Not a numbers person? Don’t let that frighten you. Think of it, instead, as just information about your business. And that means to a large extent, your employees, your customers, your vendors. The total of this aggregate and more are your business’ assets. Let’s say you entered all of this data into a spreadsheet to keep things organized. This would help you better track the businesses expenses. And to make things easier you can use bookkeeping software to simplify the process.
Assets and Liabilities
Here’s the skinny on these two biggies. Your assets would be your business equipment, inventory items, accounts receivable (money owed by customers). Your liabilities would be for example, money YOU owe to others (accounts payable), credit card balances and other balances scheduled for the following year.
What does all of this counting of assets and liabilities mean? Well, once you set everything up right, it will help manage the financial health of your company. People go into business to make a profit, and hopefully reduce their taxes as well. If things get too challenging, there are capable business accounting professionals available to assist you.
Professionals Are Available
Watson & Watt are a small business accountant firm that will make sure your books stay balanced. They use technology strategically to minimize the more boring parts of the number crunching task and show you visually the health of your business.
But what if … Read more
Let’s talk online pricing strategies… in bed. I’ve learned a lot about pricing by letting strangers sleep in my bed. Now, before you get the wrong idea, no, I haven’t joined the world’s oldest profession. I’m still an online marketer, and as an online marketer, I’ve loved learning about online pricing strategies by renting my guestroom to travellers via Airbnb.
I’ve been hosting and traveling on Airbnb for more than two years. I live in Tempe, Arizona, so most of my guests are students or academics visiting Arizona State University or athletes competing at Tempe Town Lake, and I find it a great supplement to my income. I run a small business, very small so I don’t have to deal with any HR issues, and therefore any extra income is a real boon. Spring Training baseball is also a big draw. My experience as an Airbnb host has taught me a thing or two about pricing strategy for online products. Let’s take a look at four of those lessons.
1. Meet seasonal demand
I offer a standard price that’s active most of the year, plus two variable prices that are tied to peak demand periods. In summer, I charge less. After all, Arizona doesn’t get a ton of visitors when it’s 110 degrees outside. During spring training (and other big events like Arizona’s recent Super Bowl), I charge significantly more. My seasonal pricing adjustments aren’t about gouging visitors. They’re about supply and demand. When demand goes up, so does price.
Question: What seasonal fluctuations in your business – even subtle ones – could you flatten by increasing and decreasing price to meet demand?
2. Offer volume discounts
As a host, my only real expense is the time it takes to run the laundry and freshen the room between guests. … Read more